Obsidian Energy Announces Agreement with the Woodland Cree First Nation

Calgary, Alberta–( June 11, 2024) – OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (“Obsidian Energy”, the “Company”, “we” or “our”) today announced that we have reached a mutually beneficial agreement in principle with the Woodland Cree First Nation (the “WCFN“).

OBE Announces Agreement with WCFN

Obsidian Energy has commenced the restart of production from our Harmon Valley South field in our Peace River area. As previously disclosed, the field was producing at an approximate rate of 4,500 net boe per day prior to being shut down on May 12, 2024, due to the conflict with the WCFN.

“We look forward to a strong, collaborative and respectful relationship with the WCFN,” said Stephen Loukas, Obsidian Energy’s President and Chief Executive Officer. “The Company and the WCFN engaged in extensive discussions with the help of a mediator to arrive at a fair and equitable agreement that is beneficial to both parties.”

The agreement between Obsidian Energy and the WCFN has a term through the end of 2025. The Company and the WCFN intend to keep the other terms of the agreement confidential.

ADDITIONAL READER ADVISORIES

OIL AND GAS INFORMATION ADVISORY

Barrels of oil equivalent (“boe“) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.

CONTACT

OBSIDIAN ENERGY
Suite 200, 207 – 9th Avenue SW, Calgary, Alberta T2P 1K3
Phone: 403-777-2500
Toll Free: 1-866-693-2707
Website: www.obsidianenergy.com;

Investor Relations:
Toll Free: 1-888-770-2633
E-mail: investor.relations@obsidianenergy.com

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